Inflation Is Down. It’s a Supply-Side Story.

Supply-Side Expansion Has Driven the Decline in Inflation

With the steep deceleration of inflation in the first half of 2023, the fears of a sustained, 1970s-esque scenario are now behind us.

And the primary reason for that disinflation is an expansion of supply, Roosevelt’s Mike Konczal explains in a new brief.

“[A]t the moment, the inflation story is exactly what a ‘soft landing’ would have predicted,” Konczal writes.

“A combination of resolving supply shocks and a subtle decrease in demand has driven inflation down dramatically, with no cost to the level of employment.”

Read more from Konczal.

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What We’re Talking About

Public support for labor unions at 60-year high + 40-year high of workers on strike = #LaborRenaissance
Policymakers must step up for workers or step aside. https://t.co/qB4pMoOChX

— Alí R. Bustamante, Ph.D. (@DrAliBustamante) September 4, 2023

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What We’re Reading

Inflation Is Falling. Don’t Thank the Fed. [by Roosevelt Senior Fellow J.W. Mason] – Barron’s

“Really Bad Economics”: Nobel Laureate Joseph Stiglitz Explains Where the Fed Went Wrong on Inflation – CNBC

Saule Omarova’s Plan to Remake the Financial System – Dissent

The Gap between Men and Women in the Workplace Is at a Record Low – Axios

Presidential Centers Ring the Alarm on the State of Our Democracy – MSNBC